Waystar (WAY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 20% year-over-year to $234.5 million, driven by strong core performance, client adoption, acquisitions, and rapid onboarding of providers after a competitor's cyber attack.

• Adjusted EBITDA was $93.9 million, up 12% year-over-year, maintaining a 40% margin and highlighting operational efficiency.

• Net revenue retention rate was 108%, with 1,117 clients generating over $100,000 in trailing 12-month revenue, up 9% year-over-year.

• IPO completed in June 2024, raising $914.3 million in net proceeds, used to repay over $1 billion in debt and reduce leverage.

• Benefited from a competitor's cybersecurity incident, resulting in $9 million incremental Q2 revenue and expected long-term client relationships.

Financial highlights

• Q2 2024 revenue was $234.5 million, up 20% year-over-year; subscription revenue grew 13% and volume-based revenue 26%.

• Adjusted EBITDA for Q2 2024 was $93.9 million, with a 40% margin.

• Net loss for Q2 2024 was $27.7 million, including significant stock-based compensation from the IPO.

• Unlevered free cash flow for Q2 2024 was $50 million.

• Net debt at June 30, 2024 was $1.29 billion.

Outlook and guidance

• FY 2024 revenue expected between $902 million and $918 million, representing 14–16% growth.

• Adjusted EBITDA guidance: $360–$368 million, with a 40% margin.

• Non-GAAP net income projected at $36–$42 million, with diluted non-GAAP EPS of $0.23–$0.27.

• Guidance reflects normalization of implementation timelines, seasonality in patient payments, and increased public company expenses.

• Both subscription and volume-based revenue projected to grow over 10% year-over-year.